By a staff reporter: Last Friday, after a strong Gap up opening more than 100 points < 17873-17977 > the benchmark maintained the uptrend throughout the session. Nifty not only crossed 18000 but also reclaimed 18100. From low 17905 day’s high printed at 18123 & closed at 18103, day to day basis up 1.28% or +229 points. Nifty formed a strong bouncing bullish candle as per daily chart.
After several trading sessions Nifty has succeeded to close above 20 DSMA 18080 supported by 30 DSMA 18000, which is positive for the market & short-term support has shifted from 17770/17850 to 17970/18000 level. After a volatile V shaped recovery Nifty extended gains for the second week.
Coming week is a truncated week & the market will keep an eye on the movement of US dollar index and bond yields especially amid inflationary pressure due to rising commodity prices, Global cues, FII figs and side by side current Corona status. Some countries including few European nations showed the surge in new wave of Covid cases.
Technically for swing basis, as long as the Nifty trades above crucial 17970/18000 mark, the uptrend may continue up to 18230-18330 & 18400 while on the other hand, a close below 18000/17970 could increase further weakness till 17880-17770 & even 17650.
For Intraday basis :-
On the upside :- Positive above 18123 then Resistances 18166-18199 and 18226-18246.
On the downside:- Negative below 18070 then Supports 18045, 18000 and 17970.
The Option Table data indicates decent support at 18000 and reasonable resistance at 18300.
India VIX was down from 15.75 to 15.22 levels on week-on-week basis. Cool off in volatility suggests bullish stance.
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